HDFC ERGO Recommends Low‑Mileage Car Insurance Review

Overview

HDFC ERGO released a press‑release on 21 October 2026 advising car‑insurance policyholders to reassess their coverage at renewal when the vehicle’s annual kilometre run has fallen markedly compared with the previous year.

Usage‑Based Options

The insurer highlights that some products offer a Pay‑As‑You‑Drive or similar mileage‑linked plan, and suggests customers check availability, understand how kilometres are measured, the conditions for any benefit, and the procedure if usage later increases.

Maintaining Core Cover

It cautions that reduced mileage does not eliminate exposure to theft, fire, weather‑related damage or accidents, and therefore coverage should not be automatically weakened. Policyholders are urged to review the existing protection in light of where the car is parked, its current value and typical usage.

Add‑On Evaluation

The release recommends evaluating each optional add‑on against factors such as the car’s age and condition, frequency of longer trips, usual parking location, potential repair cost burden and possible duplication of protection already held elsewhere, retaining only those that serve a clear purpose.

Claim History and No‑Claim Bonus

Customers are reminded to verify that the renewal quotation correctly reflects their claim record, noting that a lower mileage does not itself generate a no‑claim bonus; eligibility depends on remaining claim‑free during the prior policy term.

Insured Declared Value (IDV)

The insurer advises that the IDV should be based on the vehicle’s depreciation and current market value rather than mileage, and that an unusually low IDV should not be accepted solely because the car was driven less.

Continuous Coverage

Even if the vehicle is seldom used, HDFC ERGO stresses the importance of keeping the policy active to avoid gaps in protection against theft, fire, weather damage or accidental impact.

Conclusion

The press‑release concludes that while a drop in usage justifies a renewal review, it should not lead to indiscriminate reduction of cover; a careful assessment of usage‑based options, add‑ons, claim history and IDV ensures the policy remains appropriate.

(Disclaimer: The above press release comes to you under an arrangement with PNN. PTI takes no editorial responsibility for the same.)